AMERIGO RESOURCES LTD (ARG.CA) Stock Fundamental Analysis
TSX:ARG - Toronto Stock Exchange - CA03074G1090 - Common Stock - Currency: CAD
Overall ARG gets a fundamental rating of 7 out of 10. We evaluated ARG against 807 industry peers in the Metals & Mining industry. ARG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ARG may be a bit undervalued, certainly considering the very reasonable score on growth ARG also has an excellent dividend rating. These ratings would make ARG suitable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
ARG had positive earnings in the past year.
ARG had a positive operating cash flow in the past year.
Each year in the past 5 years ARG has been profitable.
Each year in the past 5 years ARG had a positive operating cash flow.
1.2 Ratios
ARG has a better Return On Assets (9.31%) than 93.18% of its industry peers.
The Return On Equity of ARG (17.61%) is better than 94.05% of its industry peers.
ARG's Return On Invested Capital of 15.53% is amongst the best of the industry. ARG outperforms 97.27% of its industry peers.
ARG had an Average Return On Invested Capital over the past 3 years of 8.34%. This is below the industry average of 12.23%.
The 3 year average ROIC (8.34%) for ARG is below the current ROIC(15.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROIC | 15.53% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
1.3 Margins
ARG has a better Profit Margin (9.51%) than 92.69% of its industry peers.
ARG's Profit Margin has declined in the last couple of years.
ARG has a Operating Margin of 20.77%. This is amongst the best in the industry. ARG outperforms 92.69% of its industry peers.
ARG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.63%, ARG belongs to the top of the industry, outperforming 89.96% of the companies in the same industry.
ARG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% |
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARG is creating value.
Compared to 1 year ago, ARG has about the same amount of shares outstanding.
The number of shares outstanding for ARG has been reduced compared to 5 years ago.
The debt/assets ratio for ARG has been reduced compared to a year ago.
2.2 Solvency
ARG has an Altman-Z score of 3.28. This indicates that ARG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.28, ARG is doing good in the industry, outperforming 61.71% of the companies in the same industry.
The Debt to FCF ratio of ARG is 0.26, which is an excellent value as it means it would take ARG, only 0.26 years of fcf income to pay off all of its debts.
ARG has a better Debt to FCF ratio (0.26) than 96.16% of its industry peers.
ARG has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
ARG has a Debt to Equity ratio (0.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 3.28 |
ROIC/WACC1.81
WACC8.56%
2.3 Liquidity
A Current Ratio of 0.91 indicates that ARG may have some problems paying its short term obligations.
With a Current ratio value of 0.91, ARG perfoms like the industry average, outperforming 41.26% of the companies in the same industry.
ARG has a Quick Ratio of 0.91. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ARG (0.77) is worse than 60.72% of its industry peers.
The current and quick ratio evaluation for ARG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 550.00% over the past year.
ARG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.96% yearly.
ARG shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.25%.
ARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.98% yearly.
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
3.2 Future
Based on estimates for the next years, ARG will show a very strong growth in Earnings Per Share. The EPS will grow by 39.37% on average per year.
ARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.50, which indicates a very decent valuation of ARG.
ARG's Price/Earnings ratio is rather cheap when compared to the industry. ARG is cheaper than 94.30% of the companies in the same industry.
ARG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.53.
A Price/Forward Earnings ratio of 5.47 indicates a rather cheap valuation of ARG.
95.54% of the companies in the same industry are more expensive than ARG, based on the Price/Forward Earnings ratio.
ARG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 5.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARG indicates a rather cheap valuation: ARG is cheaper than 97.65% of the companies listed in the same industry.
ARG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARG is cheaper than 98.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.32 | ||
| EV/EBITDA | 3.34 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ARG may justify a higher PE ratio.
A more expensive valuation may be justified as ARG's earnings are expected to grow with 39.37% in the coming years.
PEG (NY)1.2
PEG (5Y)N/A
EPS Next 2Y39.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.32%, ARG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.62, ARG pays a better dividend. On top of this ARG pays more dividend than 99.38% of the companies listed in the same industry.
ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
5.2 History
The dividend of ARG is nicely growing with an annual growth rate of 24.22%!
ARG has been paying a dividend for at least 10 years, so it has a reliable track record.
ARG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)24.22%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
ARG pays out 104.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ARG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP104.92%
EPS Next 2Y39.37%
EPS Next 3YN/A
TSX:ARG (6/6/2025, 7:00:00 PM)
1.89
-0.01 (-0.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners23.88%
Inst Owner ChangeN/A
Ins Owners12.87%
Ins Owner ChangeN/A
Market Cap310.66M
Analysts84
Price Target2.55 (34.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
Yearly Dividend0.16
Dividend Growth(5Y)24.22%
DP104.92%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-5%
Min Revenue beat(2)-11.53%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-11.53%
Max Revenue beat(4)4.76%
Revenue beat(8)3
Avg Revenue beat(8)-2.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)5
Avg Revenue beat(16)-1.42%
PT rev (1m)0%
PT rev (3m)0.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 5.47 | ||
| P/S | 1.18 | ||
| P/FCF | 5.32 | ||
| P/OCF | 3.98 | ||
| P/B | 2.19 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 3.34 |
EPS(TTM)0.18
EY9.52%
EPS(NY)0.35
Fwd EY18.28%
FCF(TTM)0.36
FCFY18.8%
OCF(TTM)0.48
OCFY25.15%
SpS1.6
BVpS0.86
TBVpS0.84
PEG (NY)1.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROCE | 28.1% | ||
| ROIC | 15.53% | ||
| ROICexc | 19.28% | ||
| ROICexgc | 19.78% | ||
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% | ||
| FCFM | 22.22% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
ROICexc(3y)10.81%
ROICexc(5y)N/A
ROICexgc(3y)11.1%
ROICexgc(5y)N/A
ROCE(3y)15.09%
ROCE(5y)N/A
ROICexcg growth 3Y-6.54%
ROICexcg growth 5YN/A
ROICexc growth 3Y-6.66%
ROICexc growth 5YN/A
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
F-Score9
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 62.58% | ||
| Cap/Sales | 7.51% | ||
| Interest Coverage | 31.48 | ||
| Cash Conversion | 90.71% | ||
| Profit Quality | 233.62% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.28 |
F-Score9
WACC8.56%
ROIC/WACC1.81
Cap/Depr(3y)56.05%
Cap/Depr(5y)50.06%
Cap/Sales(3y)7.03%
Cap/Sales(5y)5.9%
Profit Quality(3y)227.23%
Profit Quality(5y)233.17%
High Growth Momentum
Growth
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1739.14%
EBIT growth 3Y-17.31%
EBIT growth 5YN/A
EBIT Next Year85.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y391.24%
FCF growth 3Y-14.58%
FCF growth 5YN/A
OCF growth 1Y179.11%
OCF growth 3Y-13.96%
OCF growth 5Y43.83%